Loan Modification Forum - LoanSafe.org - View Single Post

LHarveyMadman · 12-02-2008, 03:44 PM

shintoooo,

I think the 3.197% rate for 3 years is a great deal. The 6.25% rate is not bad, by historical standards, but current 30 year rates are lower than that, but not tremendously lower. However, if you are like me and do not have enough equity in your home to do a conventional refinance, then this is not an option.

If I may ask, what is it about your financial situation that changed such that you were no longer able to afford the mortgage payments with your original loan? Was it an ARM that reset, or was it a loss of income or unexpected increase in personal expenses? What is/was the original interest rate on your loan?

If there is no possibility of your being able to afford the mortgage at 6.25%, then over the next few years, while your interest rate is low, you should prepare for the possible sale of your home before the rate jumps. Hopefully the housing market in your area will recover by then (if it has suffered at all).

12-02-2008, 03:44 PM	#12 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Indymac modification help shintoooo, I think the 3.197% rate for 3 years is a great deal. The 6.25% rate is not bad, by historical standards, but current 30 year rates are lower than that, but not tremendously lower. However, if you are like me and do not have enough equity in your home to do a conventional refinance, then this is not an option. If I may ask, what is it about your financial situation that changed such that you were no longer able to afford the mortgage payments with your original loan? Was it an ARM that reset, or was it a loss of income or unexpected increase in personal expenses? What is/was the original interest rate on your loan? If there is no possibility of your being able to afford the mortgage at 6.25%, then over the next few years, while your interest rate is low, you should prepare for the possible sale of your home before the rate jumps. Hopefully the housing market in your area will recover by then (if it has suffered at all).